Property Ownership

In New York, the distinction between a 'fixture' and 'trade fixture' is important in commercial leases because:

ATrade fixtures become real property automatically when attached
BTrade fixtures installed by a commercial tenant for the purpose of their trade or business generally remain the tenant's personal property and may be removed before lease expiration✓ Correct
CRegular fixtures cannot be removed by a tenant under any circumstances
DTrade fixtures require DOS approval to remove

Explanation

In New York, trade fixtures installed by a commercial tenant to conduct their business (such as shelving, equipment, counters) are generally treated as the tenant's personal property and may be removed before or at lease expiration, provided the tenant repairs any damage caused by the removal. This differs from regular fixtures, which become the landlord's property.

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